Bitcoin's price recently surged to $42,000 with strong spot trading volumes, following a brief dip below $40,000 on January 22.
Some experts, like Chris Burniske from Placeholder, suggest the possibility of Bitcoin dropping to the mid-to-high $20,000 range before stabilising.
The recent decline was attributed to extensive liquidations in the Grayscale Bitcoin Trust (GBTC).
However, a January 25 JPMorgan market report suggests that most of the downward pressure from GBTC has likely already occurred.
Periodic corrections are common in bull markets, allowing weaker investors to exit while stronger ones accumulate at lower prices.
During corrections, waiting for the establishment of a support level before considering new purchases is often advisable.